FIEO: Resolve issues of risky exporters soon, release refunds

NEW DELHI: Exporters' body FIEO demanded fast resolution of issues related to 'risky exporters' and immediate release of their refunds to help them tide over the problems arising due to COVID-19 pandemic.

The Federation of Indian Export Organisations (FIEO) said that during the current crisis, exporters are already facing problems and the matter of risky exporters is further adding to their woes.

An exporter is tagged as risky if the customs department suspects that duty drawback claims and IGST refunds are on the basis of bogus invoices. The consignments of risky exporters undergo manual checking before their claims are refunded.

It said that the government can take strict action against erring exporters but should ensure that no innocent is taken to task. FIEO President S K Saraf said delay in duty drawback and IGST related refund create issues for exporters and the government should look into the matter for its early resolution.

Sharing similar views, FIEO Regional Chairman (Western Region) Khalid M Khan said that the government should clearly inform about the reasons for declaring an exporter as "risky" because this tag has several consequences for him/her.

He also demanded for reduction in the documentation as it is time-consuming and tedious. Khan said that the federation is undertaking a survey to see the number of risky exporters in the country and the total amount of incentives stuck due to this.